Aurobindo Pharma Limited — Q1 FY25
Aurobindo Pharma reported a solid Q1 FY25 with revenue of INR 7,567 crore (+10% YoY) and PAT of INR 919 crore (+61% YoY), driven by strong performance in Europe (EUR 221 million...
bullish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Why not raise EBITDA margin guidance given 22.7% adjusted margin this quarter?
Asked by Kunal Randeria
Acknowledged the point but deferred any decision to the next earnings call without giving a direct answer.
deferred to next quarterno commitment
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Question
Since adjusted for some of the one-offs that you highlighted, this quarter we would be at roughly 22.7%. And we expect, we also said that this is kind of, you know, seasonally, slightly muted quarter from the US perspective. Also, we have baked in all the Pen G-related commercialization expense. So shouldn't the run rate from year-on-year improve? And, you know, is there any possibility of raising the EBITDA margin guidance at this point?
Santhanam Subramanian, CFO
Kunal, you're absolutely right. But if you recollect in the last earnings call, I said very clearly we will revisit the EBITDA guidance in the earnings call of November, that is the second quarter call. We will be looking into that and then reply accordingly.
Evasive
Medium priority
How did revenue sales move from Q4 to Q1?
Asked by Amey Chalke, JM Financial
Declined to provide specific revenue movement, only gave vague qualitative statement.
no number givenrefused to quantify
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Question
First question I have, is it possible for management to guide how the revenue sales have moved from quarter four to quarter one?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
We are not specifically talking about revenue as a separate sales segment, but our run rate continues to be in a similar way when we launch the product, and we expect to continue in a similar way.
Answered
High priority
Why no improvement in US injectable business despite facility resumption?
Asked by Neha Manpuria
Explained the delay due to extended remediation and gave a timeline for improvement.
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Question
I thought we were supposed to see improvement in the U.S. business with the resumption of the facility in the quarter. Could you give us some color on what's happening to that? Should we expect the improvement in the injectable business to be a little more slower versus our initial expectation?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
Yes, you're right. In fact, we thought last year, Q4, we have taken the hit, but because we wanted to be robust enough in terms of our remediation action, so it continued in Q1 as well. So our overall manufacturing was not to the fullest extent what it used to be. So Q4 and Q1, two quarters, I have taken the hit in terms of other remediation actions for the Eugia Unit III plant. So I'm cautiously optimistic that from this quarter onwards, that is Q2 of FY25 onwards, our regular injectable business should move up.
Answered
High priority
Quantify remediation costs in Q1 and expected in Q2.
Asked by Damayanti Kerai
Provided specific dollar amounts for Q1 and Q2 remediation costs.
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Question
In your opening remark, you mentioned there were some additional costs which you incurred in first quarter due to this remediation charge, etc. So can you quantify that, and how much of that could be seen in this current quarter, second quarter also?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
We have in Q1, we have spent around $9 million against the remediation cost of Eugia Unit 3, and we expect Q2 to be only a very fraction of that $9 million. I think hopefully it'll be around $2 million, and we have completed all the remediation, and we don't expect anything more than what we have already spent.
Answered
Medium priority
What is the margin profile of the European business now?
Asked by Shyam Srinivasan
Clearly stated margins are nearly mid-teens and expected to sustain or improve.
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Question
Just want to understand how is the underlying profitability of this business now tracking? Have we moved past that double digit into mid-teens in terms of the margin profile?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
I think, Shyam, in terms of the Europe business, I think they have been doing it extremely well in the last 2-3 quarters. They have been gradually increasing their overall revenue, overall margins, and I think the margins have already moved to nearly mid-teens level. And with the way Murali has communicated, and this is expected to be sustained, if not improved.
Answered
Medium priority
Is Aurobindo still the only player for Generic Emflaza (Deflazacort)?
Asked by Bino
Confirmed they are the only player currently.
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Question
First question regarding this product, Generic Emflaza, which we had launched in the US a few months back. How is it doing? Are we only the player in the market still? That is Deflazacort.
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
Deflazacort, yes, we launched this product. At this point, I think we are the only player.
Partial answer
High priority
Is the board planning to revisit the spinoff/IPO for UGA?
Asked by Jigar Valia
Acknowledged possibility but gave no timeline or decision, only that they will inform when decided.
no commitmentdeferred to future
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Question
Now with this unitary classification also kind of getting out of the way, things getting resolved. Are the board probably planning to go back to the proposed spinoff or IPO listing for UGA?
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
So, Mr. Jigar, last year, I think if I'm right, in the month of August, the board has decided to evaluate, explore various options. And we put it on hold subsequently because the inspection for the Eugia business has started. All the units have got the inspection. So now that inspections are over, we can revisit it. And some of the bankers are also approaching us. So we have to decide. But as a non-executive decision taken, and we are going to implement, we will certainly inform the market as per the compliance.
Answered
Medium priority
Why is effective tax rate 30% and outlook for FY25?
Asked by Kunal Dhamesha
Explained the reason and provided a specific outlook range for FY25 tax rate.
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Question
Subbu Sir, on the effective tax rate this quarter, we have hit around 30%. If you can provide the outlook for FY25 and what is driving this higher ETR for us?
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
Some of the units, like biosimilars company and the Lyfius, which is a Penicillin tech company, where we are incurring the OpEx, we are not taking the deferred tax credit. Right? Once we start a tax credit, obviously it will fall down. And in terms of the year as a whole, with a Lyfius' plan, expected to do well by fourth quarter, etc., probably we may come to a more than a break-even scenario by which the tax rate and the tax credits will be taken. The tax rate will come down. Overall, I think we will be somewhere around 27%-28% is what my feeling at this particular point of time.
Answered
High priority
What is the dollar revenue impact from Eugia 3 remediation in Q1?
Asked by Tarang Agrawal
Provided specific dollar impact for Q1 and Q4.
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Question
What's the dollar impact of revenue, say, in Q1 because of the remediation activity happening in UGA3?
Yugandhar Puvvala, CEO, Eugia Pharma Specialties Limited
Revenue impact, I told you like last quarter, that is Q4 of FY24, we had a $20 million revenue impact. And Q1, we had around similar $50 to $20 million impact. Okay. And we hope that's the end of it.
Evasive
Medium priority
Can US oral solid business reach $300 million quarterly run rate?
Asked by Tarang Agrawal
Refused to give a specific number or timeline, only gave general optimism.
no specific numbervague timeline
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Question
Is it possible for the OSG business to reach $300 million quarterly run rate anytime soon purely from products perspective in terms of market approvals and from a capacity perspective on the back end?
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
I will not give a specific number, but I can generally talk about it. The U.S. business, as you have seen, has been doing well. We have made major strides in building on our past success. ... We are also expecting commercialization sometime in the near future for the US oral solid. So overall, I feel fairly optimistic, and we believe that the US oral solid will do well. As far as the number is concerned, we had a good amount of growth in the recent past. And if this continues, we should be close to that number or achieve that number sometime soon.
Answered
Medium priority
Update on Ryzneuta launch timeline?
Asked by Tarang Agrawal
Provided specific reason for delay and updated launch timeline.
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Question
Any update on Ryzneuta? I mean, how is that product shaping up?
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
Ryzneuta, unfortunately, there were some problems with the CMO. We were due to launch in the Q2 of this year. The problems are being resolved, and I think there could be a delay, and the launch would be probably in the last quarter of the current fiscal at this point of time.
Evasive
Medium priority
Will the MSD deal include US and European markets?
Asked by Bino
Cited confidentiality to avoid giving details on market scope.
confidentialityno specifics
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Question
The deal, would it be for manufacturing of products also for the U.S. and European markets, or would it be more for the emerging markets?
Satakarni Makkapati, CEO, Biosimilars, Vaccines and Peptide Businesses
Bino, right now, the markets are still under discussion, but it will be a majority of the markets with probably Europe also coming in. But owing to the confidentiality nature of the discussions that are unfolding between my team and the MSD, I would not be able to provide any more update on this now.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Adjusted EBITDA margin this quarter roughly 22.7% | 22.7% | 21.4% | Overstated vs filing |
| Europe revenue guidance north of EUR 850 million | 850 | 7,567 | Understated vs filing |
| Eugia sales guidance $600 million plus for FY25 | 600 | 7,567 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.